Unassociated Document
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of
Report (Date of earliest event reported): September
28, 2007
CTI
INDUSTRIES CORPORATION
(Exact
name of registrant as specified in its charter)
Illinois
|
0-23115
|
36-2848943
|
(State
or other jurisdiction
|
(Commission
|
(IRS
Employer
|
of
incorporation)
|
File
Number)
|
Identification
No.)
|
|
|
|
22160
North Pepper Road, Barrington, IL
|
60010
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Registrant's
telephone number, including area code_____(847)
382-1000___________
N/A
|
(Former
name or former address, if changed since last
report.)
|
Check
the
appropriate box below if the Form 8-K is intended to simultaneously satisfy
the
filing obligation of the registrant under any of the following
provisions:
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR
240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act
(17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act
(17 CFR 240.13e-4(c))
Item
No. 5.02 (e) - Adoption of Compensatory Plan
On
September 28, 2007, Registrant adopted an Incentive Compensation Plan (the
“Plan”) which establishes a plan and program for incentive and bonus
compensation to be paid to designated executive and managerial employees of
Registrant. The Plan is effective for the full year 2007 and shall remain in
effect until terminated by act of the Board of Directors of Registrant. A copy
of the Plan is attached as Exhibit 10.1.
Under
the
Plan, participants designated by the Compensation Committee and Board of
Directors shall be entitled to receive incentive compensation awards on a
quarterly and annual basis representing a percentage of the Net Income of
Registrant (which is defined as net income before provision for income tax).
Participants in Pool I under the Plan are granted awards which are measured
as a
percentage of the Net Income of Registrant. Participants in Pool I are
recommended by the Compensation Committee and designated by Board resolution.
The amount of the Pool II incentive compensation shall be a percentage of the
estimated Net Income of Registrant determined on or before December 15 of each
year. Pool II Participants shall be recommended by management and approved
by
the Board of Directors.
The
aggregate amount of awards under the Plan shall not exceed 15% of Net Income
of
Registrant and the maximum amount of incentive compensation payable to any
Participant in the Plan shall be the annual base compensation of the
Participant. No incentive compensation shall be paid with respect to any quarter
in which Net Income is less than $100,000 or with respect to any year in which
Net Income is less than $250,000.
Incentive
compensation awards to named executive officers of Registrant for the year
ending December 31, 2007 include:
Howard
W. Schwan, President
|
2%
of Net Income
|
Stephen
M. Merrick, Executive
|
|
Vice
President
|
1.75%
of Net Income
|
John
H. Schwan, Vice President
|
1.75%
of Net Income
|
Brent
Anderson, Vice President
|
1.5%
of Net Income
|
Sam
Komar, Vice President
|
1.5%
of Net Income
|
Steve
Frank, Vice President
|
1.5%
of Net Income
|
Timothy
Patterson, Vice President
|
1.5%
of Net Income
|
Item
No. 9.01 - Financial Statements and Exhibits
Exhibit
No.
|
Exhibit
|
|
|
10.1
|
Incentive
Compensation Plan dated September 28,
2007
|
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, CTI Industries
Corporation has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
DATED:
October 2, 2007
|
|
|
|
CTI
INDUSTRIES
CORPORATION |
|
|
|
|
By: |
/s/
Stephen M. Merrick |
|
Stephen
M. Merrick
|
|
Executive Vice President and
Chief Financial
Officer
|